Rick Rule, President & CEO, Rule Investment Media LLC
Focus: Natural resource stocks
Top picks: EMX Royalty Orogen Royalties, Sprott
MARKET OUTLOOK:
Current weakness in precious metals markets was likely a response to the markets’ belief that the Middle East conflicts will subside in intensity. In the intermediate and longer term, U.S. debt and deficits undermine the American dollar, suggesting stronger precious metals markets. Precious metals equity markets continue to lag physical markets, but the catch-up phase is upon us.
Recent softness in base metals and industrial materials quotes suggests that there is a slowing global economy, and that investors believe that this softness will continue. Tariffs, economic nationalism, and increasing real interest rates are all probable causes. Longer term, population growth, and global urbanization, as well as three decades of under investment in productive capacity are very bullish.
The deterioration in the purchasing power of various fiat instruments, including the American dollar suggest higher nominal commodity prices, and raise the value of long lived, built productive capacity, by raising the costs of developing new capacity.
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TOP PICKS:
EMX Royalty (EMX TSX)
Orogen Royalties (OGN TSX)
Sprott (SII TSX)
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| EMX TSX | Y | Y | Y |
| OGN TSX | Y | Y | Y |
| SII TSX | Y | Y | Y |
PAST PICKS: July 19, 2024
Meren Energy (MER TSX) – previously Africa Oil
Then: $2.47Now: $1.69
Return: -32%
Total Return: -26%
G2 Goldfields (GTWO TSX)
Then: $1.59
Now: $2.85
Return: 79%
Total Return: 79%
Kenorland Minerals (KLD TSX)
Then: $1.10
Now: $1.90
Return: 73%
Total Return: 73%
Total Return Average: 42%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AOI/MER TSX | Y | Y | Y |
| GTWO TSX | Y | Y | Y |
| KLD TSX | Y | Y | Y |
